Several members of the Bank of Japan Policy Board were concerned over the negative effects that Japan's stock market decline is having on the financial environment during meetings Aug. 8 and 9, according to minutes released Tuesday.
"Many members expressed the view that it was uncertain whether the current stable financial environment could be maintained if stock prices weakened further," the minutes say.
A further decline in stock prices could have negative effects, such as provoking fears over the financial system, the expansion of credit spreads and a cautious lending attitude among banks, they say.